FREE Property & Casualty Insurance License MCQ Questions and Answers

Question 1

The homeowners policy type HO-5 covers all exposures on an all-risks basis. EXCEPT:

Accepted Answer

Tenant's personal vehicle

Answer

Other structures

Answer

Personal property

Answer

Dwelling

Question 2

Is there a specific form or document that the insured must use to notify the insurance company of a claim?

Accepted Answer

No, a form, letter, or lawsuit could notify of a claim

Answer

Yes, anything other than a specific claim reporting form would be denied

Answer

Yes, a form specific to the insurance carrier must be completed

Answer

No, a simple call is always fine for reporting a claim

Question 3

Different homeowner policies are covered in both broad and simple forms. Which type, broad or basic, offers the most loss protection?

Accepted Answer

Broad form

Answer

Basic form

Answer

Both have equal amounts of perils insured against

Answer

Both have equal amounts of perils insured against

Question 4

Rebecca was traveling to a job interview. She noticed that the light had just turned red and that she was running late. Rebecca didn't completely look to see whether there were any other cars nearby before continuing through the red light because she didn't want to lose time waiting at the stoplight. But as soon as the light turned green, an automobile entered the intersection, and it collided with Rebecca's. What qualifies Rebecca as the party at fault and justifies this?

Accepted Answer

Negligent

Answer

Not paying attention to the scene around her

Answer

Rebecca would not be cited

Answer

Speeding

Question 5

In order to relocate for a work move, Mary made the decision to rent a townhouse. Mary should get what kind of homeowners insurance to cover her exposures as a tenant.

Accepted Answer

HO-4

Answer

HO-3

Answer

HO-2

Answer

HO-8

Question 6

Which amount is deducted from the replacement cost value of a particular piece of property to arrive at the actual cash value?

Accepted Answer

Depreciation value

Answer

Actual replacement value

Answer

Wear and tear value

Answer

Actual value plus

Question 7

Andrew forgot to lock his car door since he was running late for a work meeting. Michael did not want to turn around to go back and secure the car when he noticed it was unlocked. Andrew believed that even if something was stolen, his insurance would pay for the damage. Which kind of risk has Andrew created by failing to return to secure his car door?

Accepted Answer

Morale hazard

Answer

Physical debris removal hazard

Answer

Moral hazard

Answer

Physical hazard

The homeowners policy type HO-5 covers all exposures on an all-risks basis.EXCEPT:

The homeowners policy type HO-5 covers all exposures on an all-risks basis.
EXCEPT: